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DECISION

Approving the five-year (2006-2010) plan on development of collective economy

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 26, 2003 Law on Cooperatives;

Pursuant to the Government's Decree No. 177/2004/ND-CP of October 12, 2004, detailing the implementation of a number of articles of the 2003 Law on Cooperatives;

At the proposal of the Minister of Planning and Investment,

DECIDES:

Article 1.- To approve the five-year (2006-2010) plan on development of collective economy with the following principal contents:

I. DEVELOPMENT VIEWPOINTS

1. To develop the collective economy in diversified forms with cooperatives as the core in order to positively contribute to the cause of national industrialization and modernization.

2. The State shall create a favorable legal environment for the collective economy to fruitfully develop; respect the organization and operation principles and genuine values of the collective economy; continue renewing and perfecting the management mechanisms and policies to encourage the development of the collective economy.

3. Collective economic organizations must principally bring into play their internal strengths while availing themselves of the supports and favorable conditions provided by the State to expand their scale, raise the quality and efficiency of their production and business activities.

II. DEVELOPMENT OBJECTIVES

1. General objectives:

a/ To renew and develop the collective economy in various forms in accordance with the provisions of law on cooperatives;

b/ To raise the growth rate and help the collective economy together with their members' economy and member households' economy represent a greater and greater proportion in the national economy.

c/ To contribute to hunger elimination and poverty reduction, create more jobs and improve the material and spiritual life of their members and local population communities, particularly in rural areas.

1. Specific objectives:

a/ To increase the number of cooperatives by 7.2%/year on average, the number of cooperative members by around 7.3%/year; to encourage cooperatives to expand their production and business scales and set up unions of cooperatives;

b/ To increase the number of cooperation groups by around 3.2%/year on average, the number of group members by 5.3%/year; to support and encourage cooperation groups having conditions to register for establishment of cooperatives;

c/ The proportion of the collective economy sector (covering members' economies) to account for around 13.8% of the national GDP;

d/ The rate of cooperative managers having a university degree to reach about 20% and having an intermediate degree to reach about 38%;

e/ To double the average income of laborers in the collective economy sector, of cooperative members, cooperation group members over 2005.

III. DEVELOPMENT ORIENTATIONS

1. For agriculture (including agriculture, forestry, fisheries and salt making):

a/ To renew and raise the efficiency of the operation of service cooperatives serving agricultural production in the direction of lowering the charges and raising the quality of services provided by cooperatives to cooperative members; to expand internal credit services, product consumption services, daily-life services... demanded by cooperative members and communities;

b/ To continue building new cooperation groups and cooperatives after the multi-business line model, providing services for cooperative members' economic activities while developing product processing, cottage industrial and handicraft production, credit and trade activities in service of cooperative members' daily life;

c/ To encourage and create conditions for cooperatives to expand their production and business scale, to align, consolidate or merge into larger cooperatives in the direction of expanding diverse services in agriculture; to transfer technologies, to promote agriculture, fishery and salt making, plant protection and animal health; to supply materials, fertilizers, feeds, produce and supply animal breeds and plant varieties; to consume products; process agricultural products; to provide irrigation services, etc.

2. For industry:

a/ To renew, raise the efficiency and expand the scale and scope of operation of cooperatives with a view to providing services for industrial, cottage-industrial and handicraft production by cooperative members.

To link the renewal and development of cooperatives to programs on industrial promotion in order to join other economic sectors in boosting the development of industries, cottage industries and handicraft at industrial clusters and create premise for the formation and development of new industrial craft villages in the process of national industrialization;

b/ To renew and develop cooperatives into satellite entities to provide services and consume products for large-scale industrial enterprises;

c/ To encourage, create conditions for formation of unions of cooperatives or collective-economy associations of high competitiveness at the regional or national level.

3. For construction:

a/ To renew, raise the efficiency of the existing cooperatives by combining financial, managerial and organizational solutions, raising the efficiency of the operation of cooperatives providing services for cooperative members, modernizing construction machinery and equipment, renewing technologies, applying technological advances, raising the operation efficiency and competitiveness of cooperatives;

b/ To encourage the establishment of new cooperatives. To experimentally build and develop housing cooperatives. To expand cooperatives providing construction services and materials.

4. For trade:

a/ To renew, raise the efficiency of, and develop trade cooperatives and unions of trade cooperatives in order to better serve the economic activities and diversified daily-life demands of cooperative members and population communities in localities;

b/ To develop appropriate forms of economic partnership between cooperatives as well as between cooperatives and enterprises of other economic sectors at the regional or national level;

c/ To develop supermarket cooperatives and networks of supermarket cooperatives operating in a civilized manner, bringing benefits to cooperative members and population communities in localities;

d/ To develop trade cooperation groups, trade cooperatives of individual trading households;

e/ To develop market cooperatives, including wholesale market cooperatives in areas where conditions permit in order to attract small traders and goods sellers in markets to be cooperative members.

5. For communications and transport:

a/ To renew and raise the efficiency of the operation of transport service cooperatives which provide necessary services for members engaged in transport business activities;

b/ To develop cooperatives and unions of cooperatives which provide transport services to satisfy the general demands of cooperative members, population communities or organizations and enterprises;

c/ To attach importance to the development of cooperatives which provide mechanical services on repairing means of transport for cooperative members, cooperatives dealing in stations and parking lots with their members being means owners who use such stations or parking lots, and cooperatives engaged in construction and repair of traffic works.

6. On credit:

a/ To expeditiously complete the consolidation and reorganization of the operation of people's credit funds;

b/ To encourage the establishment of new people's credit funds in areas where there appear demands therefor and the law-established conditions are fully met. To expand the scale and area of operation of people's credit funds in a firm and safe manner, attracting more and more cooperative members to participate in the funds;

c/ To concentrate capital for lending to cooperative members for investment in developing production and business, restructuring economy, expanding production and business lines. To align with one another in order to create capital for cooperatives in the same geographical areas to develop production and business;

d/ To build and develop strong people's credit funds from the central to grassroots level in the direction of strong alignment, then proceed to building a cooperative bank; to closely associate the system of people's credit funds with other cooperatives; to ensure that the system of people's credit funds develop stably and firmly and raise the quality of their operation.

7. For other branches and domains: To develop cooperation groups and cooperatives in other branches and domains such as environment cooperatives; cooperatives at school, daily-life service cooperatives; pharmaceutical cooperatives; healthcare cooperatives...

IV. MAJOR SOLUTIONS

1. Enforcing the Law on Cooperatives and the decrees guiding the Law and the Civil Code:

a/ To expeditiously promulgate in a timely and coordinative manner sub-law documents; to intensify the inspection and supervision of law enforcement;

b/ To guide, support and encourage the development of cooperatives in accordance with the provisions of the Government's Decree No. 88/2005/ND-CP of July 11, 2005, on a number of policies to support and encourage the development of cooperatives;

c/ To guide and support the propagation of law on cooperatives; to review and build typical cooperative models; to enhance the capacity of the apparatus for state management over the collective economy; to study the development of services in support of development of cooperatives; to conduct comprehensive survey and evaluation of the collective economy; to formulate a system of scientific and practical criteria on the collective economy, periodically updating data; to implement a project on training for officials performing the state management over the collective economy;

d/ To draft a decree guiding the organization and operation of cooperatives in accordance with the Civil Code;

e/ To study, preliminarily review and finally review the enforcement of the Law on Cooperatives in order to revise in time the provisions of law on cooperatives and other relevant policies.

2. Raising the operation efficiency of the collective economy:

a/ To continue renewing and raising the efficiency of the existing cooperatives in accordance with the 2003 Law on Cooperatives;

b/ To dissolve cooperatives which have not yet been transformed or are unable to transform themselves, the transformed cooperatives which have not operated or exist in name only;

c/ To mobilize cooperative members to raise their contributed capital levels and to mobilize cooperatives that have conditions to attract more members, to mobilize cooperatives of the same production and/or business lines or in the same operation domains to consolidate or merge with one another in order to increase their financial potentials and operation scale.

3. Setting up collective economic organizations:

a/ To propagate, campaign for, support and encourage the establishment of cooperatives and unions of cooperatives.

b/ To mobilize cooperation groups which have conditions to set up cooperatives.

4. Raising the capacity of state management over the collective economy:

a/ To set up and consolidate the managerial apparatus, to arrange appropriate full-time officials at ministries, branches and provincial/municipal services which perform state management over the collective economy: there will be a department at each ministry, a section at each provincial/municipal service, a full-timer at each district and a part-timer at each commune to monitor and guide the implementation of policies towards this economic sector;

b/ To intensify the superiors', ministries' or branches' inspection and supervision of the performance of the state management over the collective economy respectively by the subordinates or localities; to review and periodically evaluate and draw experience on the state management over the collective economy;

c/ To study and stipulate criteria for commendation, to select and propose forms of commendation to honor individuals and collective economic organizations that operate fruitfully and record many outstanding achievements in the economic, cultural and social domains.

5. Boosting international cooperation on collective economy

To cooperate with, and make full use of the support and assistance of, foreign countries and international organizations in the development of collective economy regarding human resource training, consultancy information, investment capital, raising of quality and efficiency of the state management.

V. DIRECTION OF IMPLEMENTATION OF THE PLAN

1. Ministries, branches and provincial/municipal People's Committees shall finalize and implement their five-year (2006-2010) and annual plans on development of collective economy on the basis of the approved national five-year plan on development of collective economy; and annually report on the implementation of the plans on development of collective economy under the guidance of the Ministry of Planning and Investment.

2. The Ministry of Planning and Investment shall have to guide the elaboration of the plans by ministries, branches and localities, urge, inspect and supervise the implementation of such plans, coordinate with relevant ministries and branches in allocating state budget funds for implementation; periodically report to the Prime Minister on the implementation of such plans.

Article 2.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 3.- Ministers, heads of ministerial-level agencies, heads of Government-attached agencies, and presidents of provincial/municipal People's Committees shall have to implement this Decision.